Morimatsu International Holdings Company Limited (2155) AI Stock Analysis

• Market Cap: HK$7.73B
• Dividend Yield: 1.55%
• Average Volume (3M): 6.53M
• Price to Earnings (P/E): 9.3
• Beta (1Y): 1.34
• Revenue Growth: -7.43%
• EPS Growth: -15.09%
• Country: HK
• Employees: 4,347
• Sector: Industrials
• Sector Strength: 85
• Industry: Industrial - Machinery
• EPS (TTM): 0.34
• Shares Outstanding: 1,245,419,000
• 10 Day Avg. Volume: 5,300,784
• 30 Day Avg. Volume: 6,525,541
• PEG Ratio: 0.27
• Price to Book (P/B): 3.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 231.91
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: HK$7.50 ▲(20.77%Upside)

Morimatsu International Holdings scores well due to its robust financial performance, characterized by strong profitability and low leverage. Technical indicators show a positive trend, although caution is advised due to slightly negative MACD. The stock's attractive valuation further supports its potential for future growth.

Morimatsu International Holdings Company Limited Business Overview & Revenue Model

Company Description

Morimatsu International Holdings Company Limited designs, manufactures, installs, and operates and maintains process equipment, process systems, and solutions primarily for chemical, biological, and polymerization reactions in China and internationally. The company's pressure equipment primarily includes heat exchangers, tanks, reactors, and towers. It offers bioreactor systems and fermenters, parallel bioreactor systems, culture medium, pharmaceutical solutions, online solution preparation systems, harvest systems, buffer solution preparation and storage system, inactivation and CIP workstation systems, isolators, disposable magnetic mixing systems, disposable solution storage and mixing systems, modular factory, and clean decorators, as well as disposable magnetic mixing systems and wave reactors. The company also provides design, verification, maintenance, digital operation and maintenance, and other related services. It offers its services to oil and gas, new chemical materials, pharmaceuticals, raw materials for power batteries, water treatment, new energy, consumer goods, electronic chemicals, and other industries. Morimatsu International Holdings Company Limited was founded in 1990 and is headquartered in Shanghai, China.

How the Company Makes Money

Morimatsu International Holdings Company Limited generates revenue primarily through the sale of its industrial pressure equipment and related systems. The company's key revenue streams include custom-designed pressure vessels, heat exchangers, and integrated systems for various industrial applications. These products are vital components in the operations of industries such as oil and gas, chemical processing, pharmaceuticals, and food and beverage, where precise pressure control and thermal management are crucial. Additionally, the company may engage in strategic partnerships and collaborations that enhance its market presence and expand its client base. By focusing on delivering high-quality, customized solutions, Morimatsu International maintains strong relationships with its clients, which contributes significantly to its earnings.

Morimatsu International Holdings Company Limited Financial Statement Overview

Summary

Morimatsu International Holdings demonstrated strong financial performance with consistent revenue growth and healthy profitability margins. Despite slight declines in revenue and net income, the company maintained strong profitability and efficient cash flow management, positioning it well for future opportunities.

Income Statement

Morimatsu International Holdings demonstrated strong financial performance with consistent revenue growth and healthy profitability margins over the years. Gross profit margin for 2024 stood at 29.7%, showing efficiency in cost management. The company maintained a solid net profit margin of 10.6% in 2024, indicating strong profitability. However, slight declines in revenue and net income compared to 2023 suggest challenges in sustaining top-line growth.

Balance Sheet

The balance sheet reflects strong financial stability with a low debt-to-equity ratio of 0.06 in 2024, indicating low financial leverage. Return on Equity (ROE) improved to 14.6%, showcasing effective utilization of shareholders' equity. The equity ratio stood at 56.7%, signifying a robust equity base. Despite these strengths, total assets slightly decreased, indicating potential asset management challenges.

Cash Flow

The company displayed significant improvement in free cash flow, growing from a previous period, enhancing liquidity. The operating cash flow to net income ratio was robust at 1.56, highlighting efficient cash generation relative to net income. The free cash flow to net income ratio of 0.98 shows strong cash flow alignment with profitability, though capital expenditure fluctuations reflect ongoing investment activities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.95B	7.36B	6.49B	4.28B	2.98B
Gross Profit	2.06B	2.06B	1.79B	1.18B	844.10M
EBITDA	1.12B	1.14B	890.68M	564.95M	430.56M
Net Income	737.24M	844.68M	669.27M	381.84M	289.38M
Balance Sheet
Total Assets	8.91B	8.93B	7.96B	5.70B	3.03B
Cash, Cash Equivalents and Short-Term Investments	2.99B	2.23B	1.62B	1.55B	424.43M
Total Debt	295.79M	384.33M	467.40M	373.88M	446.15M
Total Liabilities	3.63B	4.54B	5.14B	3.69B	2.04B
Stockholders Equity	5.05B	4.38B	2.82B	2.01B	998.31M
Cash Flow
Free Cash Flow	721.79M	100.50M	38.09M	730.26M	25.90M
Operating Cash Flow	1.15B	671.28M	905.15M	1.17B	155.65M
Investing Cash Flow	-765.72M	-408.13M	-1.15B	-448.13M	-135.77M
Financing Cash Flow	-144.06M	506.98M	57.05M	445.06M	-30.61M

Morimatsu International Holdings Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2155, the sentiment is Positive. The current price of 6.21 is below the 20-day moving average (MA) of 6.21, above the 50-day MA of 6.12, and above the 200-day MA of 5.30, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 50.79 is Neutral, neither overbought nor oversold. The STOCH value of 56.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2155.

Morimatsu International Holdings Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1286	78 Outperform	HK$5.62B	8.73	13.24%	5.35%	1.79%	10.02%
1133	78 Outperform	€13.19B	7.22	11.35%	4.14%	30.12%	139.92%
2155	77 Outperform	HK$7.73B	9.25	15.68%	1.55%	-7.43%	-15.09%
Sector *	71 Outperform	¥252.71B	13.07	8.49%	3.07%	6.30%	13.10%
2722	68 Neutral	HK$4.42B	9.46	5.40%	3.29%	8.61%	38.69%
0187	56 Neutral	HK$6.08B	1,100.00	0.20%	―	12.45%	―
0658	48 Neutral	$2.01B	―	-70.25%	―	-9.95%	-6348.85%

Morimatsu International Holdings Company Limited Corporate Events

Morimatsu Announces Capital Subscription and Grant of Put Options

Morimatsu International Holdings Company Limited has announced a transaction involving the subscription of additional registered capital by investors in its non-wholly owned subsidiary, the Target Company. This transaction will increase the registered capital of the Target Company and reduce Morimatsu’s shareholding from approximately 85.09% to 73.99%, constituting a deemed disposal of equity interest. Additionally, the company has granted put options to the investors, allowing them to require Morimatsu or its subsidiaries to purchase equity interests under certain conditions. This move is classified as a discloseable transaction under the Hong Kong Listing Rules, impacting the company’s financial arrangements and stakeholder interests.

Morimatsu International Approves All Resolutions at AGM

Morimatsu International Holdings Company Limited announced that all proposed resolutions were passed at its Annual General Meeting held on June 26, 2025. The resolutions included the adoption of financial statements, declaration of a final dividend, re-election of directors, and the reappointment of KPMG as the independent auditor. The approval of these resolutions reflects strong shareholder support and positions the company for continued stability and growth.

Morimatsu International Holdings Announces Supplemental Notice for 2025 AGM

Morimatsu International Holdings Company Limited has announced a supplemental notice for its 2025 Annual General Meeting (AGM) to be held on June 26, 2025, at JW Marriott Hotel Hong Kong, with an option for virtual attendance. A special resolution will be proposed to adopt new Articles of Association, replacing the existing ones, which reflects the company’s ongoing efforts to update its governance structure.

Morimatsu International Announces Board Changes and Proposed Amendments

Morimatsu International Holdings Company Limited has announced changes in the composition of its board committees, effective from May 29, 2025. These changes involve Ms. Chan Yuen Sau Kelly and Mr. Kanno Shinichiro swapping roles between the nomination and remuneration committees. The adjustments are in response to upcoming amendments to the Listing Rules and Corporate Governance Code, aimed at enhancing board effectiveness and corporate governance. Additionally, the company proposes amendments to its Articles of Association to align with new legal and regulatory requirements, subject to shareholder approval at the 2025 AGM.

Morimatsu International Holdings Announces Board Composition and Committee Roles

Morimatsu International Holdings Company Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. The board consists of executive directors, a non-executive director who serves as chairman, and independent non-executive directors. Additionally, the company has established three standing board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, with specific directors assigned to each committee.

Morimatsu International Enhances Governance with New Nomination Committee

Morimatsu International Holdings Company Limited has established a nomination committee to oversee the appointment and nomination processes within the company. The committee is primarily composed of independent non-executive directors and is required to have at least one member of a different gender. The committee will meet at least once a year, and its resolutions require the approval of more than half of its members. This move is likely to enhance the company’s governance practices by ensuring a diverse and independent oversight in its nomination processes.

Morimatsu Directors Exercise Options and Sell Shares

Morimatsu International Holdings Company Limited announced that some of its directors have exercised their pre-IPO share options and subsequently sold a portion of their shares to cover associated costs and taxes. The directors have expressed confidence in the company’s future growth and alignment with shareholder interests, with no current plans for further share disposals, though they may consider acquiring more shares in the future.

Morimatsu International Holdings Announces 2025 AGM and Key Resolutions

Morimatsu International Holdings Company Limited has announced its upcoming Annual General Meeting (AGM) scheduled for June 26, 2025, in Hong Kong, with options for both physical and virtual attendance. Key agenda items include the adoption of financial statements, declaration of a final dividend of HK$0.15 per share, re-election of executive directors, and reappointment of KPMG as the independent auditor. The meeting will also consider resolutions related to the issuance of shares and director remuneration, indicating strategic financial and leadership continuity plans.